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Achievo CEO Lee on China Outsourcing: A 2006 Q&A

In a 2006 CIO interview, Achievo CEO Robert Lee discussed IP safeguards, experienced project staff in China, and communication during acquisitions.
From TheFinanceBase Team3 min to read
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In a September 27, 2006, interview with CIO, Achievo chairman and CEO Robert Lee discussed intellectual-property safeguards, recruiting experienced staff in China, and integrating acquisitions. His answers describe Achievo’s approach at that time; they are not a current company profile or an independent assessment of its practices.

What did Achievo’s China outsourcing footprint look like in 2006?

CIO described Achievo as a software outsourcing company based in San Ramon, California. At the time, it had local offices in North America, Germany, and Japan, while its development capability extended across six cities in China. The interview also said Achievo had grown through acquisitions in China, Germany, and elsewhere. These are details reported in 2006, not verified information about the company today. (CIO, September 27, 2006)

Asked about the political climate, Lee said he believed the U.S. backlash against outsourcing had subsided after the 2004 election. That was his assessment, not a measured finding about public opinion or outsourcing activity.

How did Lee describe intellectual-property safeguards?

Lee said customers regularly raised concerns about intellectual property (IP). He argued that a provider could reduce exposure to theft but could not remove the risk entirely. In his account, risk management depended in part on communication and educating employees about proper handling.

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“But while you can reduce your exposure to the risk of IP theft, you can never eliminate it.”

— Robert Lee, Achievo chairman and CEO, on intellectual-property risk

The Mercedes-Benz source-code example

Lee described dividing project work across locations. As an example, he said a procedure for a Mercedes-Benz project required its source code to remain in Germany, at Achievo’s German office. This is Lee’s account of one customer arrangement; the interview does not independently verify the procedure.

Questions a customer could ask a provider

  • Where will source code and other sensitive materials be stored and accessed?
  • What handling rules apply, and how are they communicated to staff?
  • Which parts of the work will take place at each location?

These questions follow from Lee’s remarks; the interview does not establish that Achievo or any other provider meets a particular security standard.

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What staffing challenge did Lee identify?

Lee acknowledged that Achievo needed more experienced project managers and designers in China. He said the company usually regarded people with five years of experience as experienced. That was Achievo’s stated threshold in this 2006 interview—not a current industry standard or a general measure of the Chinese labor market.

For a customer assessing a project, the practical issue is who will lead project management and design, and what relevant experience those people bring. The interview offers Lee’s account of a staffing need, not independent evidence about the company’s later staffing or project outcomes.

Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

How did Lee say Achievo approached acquisitions?

Lee said Achievo aimed to treat acquired leaders as successful executives, build trust through communication and shared goals, and involve customers soon after a deal. He described a clear vision and support from key team members as important to making a large software acquisition work.

“Having a very clear vision that can be communicated and winning the support of your key team members is what’s going to make it happen.”

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— Robert Lee, on making large software M&A deals work

“Part of our integration model involves calling on our customers right after the deal and explaining to them what this is all about.”

— Robert Lee, on Achievo’s post-deal customer communication

These statements describe Lee’s account of Achievo’s integration approach. They are not an independent evaluation of how well its acquisitions performed or a guarantee that the same approach works in every deal.

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What kind of source is this interview?

The source is an edited telephone Q&A published by CIO on September 27, 2006. It features Robert Lee, then Achievo’s chairman and CEO, and credits Sumner Lemon of IDG News Service’s Singapore Bureau. It is useful as a historical account of what Lee said about outsourcing operations, IP concerns, staffing, and acquisitions—not as a current guide to Achievo or a comparison of outsourcing vendors.

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